What is that? My dad said that he is being auditied.
2007-08-08 07:10:00 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
That is where either the IRS or the state dept of revenue is reviewing your dad's tax return to make sure he has reported all his income, and that all his deductions/expenses are legitimate.
2007-08-08 07:12:57 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Depends on by whom.
If it's the IRS, then they are reviewing past tax returns and making sure he has receipts for all deductions claimed and has reported all income.
If he is self-employeed, it may be a peer review (they are also called audits and are sometimes required to renew a professional license).
It could be a requested review of his books by an accountant just as a precaution.
2007-08-08 14:13:18 · answer #2 · answered by sortaclarksville 5 · 0⤊ 0⤋
The IRS is checking his return to make sure it is correct. It may be a red flag or a random check. If he didn't do anything wrong he is ok. This word scares people but sometimes it is random and a pain but just the way the tax people are. Tell him to be nice to them as they have more power than anyone to ruin your life by taking everything.
2007-08-08 14:14:59 · answer #3 · answered by Domino 4 · 0⤊ 0⤋
It means the IRS is questioning something on his tax return. It doesn't mean that he's done anything wrong or is in trouble, just that they are asking for more information. If he has the documents they are asking for, and can prove that he was correct, then he'll be fine. If he doesn't have the documents, or was NOT correct in what he put on his return, he might have to pay additional taxes.
2007-08-08 14:42:10 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
sounds like "the man" is going over your dad's tax returns/financials to make sure he's on the up and up. usually, there's nothing to worry about. unless, of course, he's not on the up and up
2007-08-08 14:13:54 · answer #5 · answered by menotyou 4 · 0⤊ 0⤋